Gold prices got off to a positive start in 2024, driven by expectations that the US Federal Reserve (FED) will cut interest rates this year and concern about attacks on shipping in the Red Sea, Reuters reported.
At 14:58 GMT, the gold Spot rose 0.3% to US$2,069.39 an ounce, while US gold futures also rose 0.3% to US$2,078.60. “I think there is a possibility of a surge in the Red Sea and that could probably push gold prices even higher,” said Daniel Pavilonis of RJO Futures.
The prices of gold They rose 13% in 2023, their first annual advance since 2020, and are expected to reach record highs in 2024, as lower rates reduce the opportunity cost of holding bullion, which does not bear interest.
“Gold price was boosted by expectations of rate cuts in 2023, so we could see significant gains in 2024, when central banks begin to relax their monetary policies and yields fall further,” said Fawad Razaqzada of City Index.
“Inflationary pressures are likely to continue to ease around the world, leading to the start of the big cycle of rate cuts,” he said, adding that the actual timing and extent of the cuts will depend on incoming data.
This week, the market’s attention will focus on the minutes of the last FED meeting, which will be released on Thursday, January 4. Data on job openings in the United States and non-farm payrolls for December will also be closely monitored.both scheduled for Friday, January 5.
In other precious metals, spot silver gained 0.8% to $23.9526 an ounce; palladium fell 0.3%, to US$1,095.55; and platinum fell 0.1%, to US$986.44.
With information from Reuters.
Source: Larepublica
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